Tax season comes to an end in a few short weeks. The average tax return is $3,000. That’s a pretty healthy amount of extra cash to have lying around. How do you intend to invest your tax return?
Here are 9 savvy ways to flip your tax return:
- Pay off high-interest debt.
- Tuck away three to six months’ worth of expenses in an emergency fund.
- Contribute up to $5,500 to an IRA for 2017 (or $6,500 if 50 or older) — and withdraw the money tax-free in retirement. You can contribute the full $5,500 as long as your income falls below $118,000 if you’re single, and $186,000 if married filing a joint tax return.
- Buy shares in a mutual fund or stock.
- Invest extra cash into a college education for the kiddies. Contribute to a 529 account.
- Treat yourself or your family to a vacation. Who believes in all work and no play?
- Increase your 401K contribution.
- Give a tax-free annual gift.
- Invest in your career or business.
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Robin is a digital content creator and has worked in the digital space for nearly ten years. "Robinrazzi" is a nickname given from a former colleague and is a perfect integration of her name and one of her greatest hobbies of having a camera in hand to capture once in a lifetime moments like paparazzi. She has traveled the world covering entertainment, celebrities, events and anything trending. She holds a BA in communications from Penn State and MS in marketing from Johns Hopkins University. She currently serves as Digital Content Coordinator for WHUR.